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Apple TV+ could suffer “limited reach”

Expected to reach 57 per cent of US households

IHS Markit | Technology has warned of “limited reach” for Apple TV+ in the face of widespread competition.

The service is expected to reach 57 per cent of US households via iOS devices, Samsung smart TVs and web browsers, as IHS Markit’s Fateha Begum explains: “With its limited device distribution, Apple TV+ will be accessible to just over half the online population in the US, thus hindering subscriber growth.

“Although Apple is the largest smartphone brand in the US market and plans to offer free access with hardware purchases, the company would need to widen its device distribution to compete with OTT players that are now available nearly universally.”

The research concluded that in order to compete with Netflix’s 95 per cent reach, the service would have to be made available on third-party devices, including competitors’ digital media adapters, adding that launches on Roku, Fire TV, Sony, LG and Vizio smart TVs are expected after launch.

“By opening up to other platforms, Apple TV+ will see its addressable base increase by 24 per cent to 87 million US households,” said Begum. “This will improve Apple’s position, but the company will still be at a disadvantage compared to competitors who can address the entire US market of 124 million online households.”